Recently, a lighting city in Wuhan has caused the merchants to pull down the banner because of the increase in rent. Faced with the bleak business of the physical store, the lighting city continued to increase rents regardless of the market, and Shangjia people felt that they could not survive.
This is just a microcosm of the industry. Since 2016, the lighting and lighting market as a whole has been in a slump, and the brand sales of major home building materials stores, ceramic building materials market and lighting market have generally declined. Faced with the downturn of the lighting and lighting market environment, coupled with the rising raw materials, transportation costs and labor costs, the production and distribution costs of lighting products have also risen, making many lighting manufacturers face more severe survival and development pressures.
LED product homogenization is serious, lack of innovation
With the rapid development of the LED industry, the homogenization of LED products is serious, the price war is intensifying, and the products are gradually becoming standardized. At the same time, the market is concentrated in large factories, and companies that lack competitiveness are gradually being eliminated. Some industry insiders pointed out that if LED lighting companies have innovation, they will not go to the homogenization road. At present, the entire lighting industry is in a transitional period, and during the development period, the market demand for the entire LED is still very strong. Different companies should have their own innovations and find products that suit the market demand.
The reasons for the chaos in the LED industry are various. First of all, the current government supervision is concentrated in large enterprises, but the market is often disrupted by some relatively small enterprises, so that market supervision is difficult to achieve the desired effect; secondly, from the perspective of the market Consumers' consumption concept is still not rational, and more often stays at a simple price. If you really want to do a good job of the quality of a product, you need to pay a certain price, then when consumers are blindly pursuing low prices, as a manufacturer, it will inevitably save costs in the production process, the results can be imagined.
LED e-commerce is in its infancy
Due to the rise of Internet consumption and the fierce competition of e-commerce, many e-commerce platforms in the industry have sprung up. When they integrate the resources of the industry, they also bring new business opportunities to many enterprises. In addition to traditional e-commerce platforms such as Tmall and Jingdong, there are many exclusive platforms for the lighting industry.
At present, most LED lighting companies have established flagship stores on mature e-commerce platforms. This is more of an image display and cannot be the only way to achieve sales. Because the cost of e-commerce is very high, including promotion costs, activity costs, operations teams, and so on. In fact, it is normal for enterprises to invest in output at the initial stage of e-commerce.
Now not only lighting companies, but many dealers are also doing e-commerce. Future online wholesale channels and traditional wholesale channels will slowly merge, and the speed of integration will accelerate. Enterprises should use the benchmark of the flagship store to quickly promote the brand of the company, and then go to the new exclusive platform to develop online dealers. If these resources are integrated to achieve an organic combination of online and offline, this may be the future development trend of lighting e-commerce.
At present, under the Internet trend, e-commerce has penetrated into all walks of life. The attitudes of industry manufacturers to e-commerce vary from the initial exclusion to being forced to accept, and then embraced with enthusiasm. For example, in 2015, “Double Elevenâ€, Opal Lighting’s myth of sales of 121.8 million yuan once again made e-commerce become the focus of industry public opinion, and just as everyone was involved in e-commerce, huge competitive pressures made many companies physically and mentally exhausted. Regardless of the channel model adopted, it is mainly based on what products the company sells, and it must be promoted according to local consumption habits.
At present, due to insufficient market supervision, the LED lighting industry is mixed, the overcapacity, the impact of e-commerce, and the phenomenon that merchants pull banners against the lighting city. Businesses are not doing well, directly mapping the problems that arise in the industry. However, from the overall trend of the industry, the impact of industry chaos in the future will become smaller and smaller, because as the market matures, the pursuit of product quality will become higher and higher, and the requirements for the overall strength of the enterprise will be corresponding. Improve, so this is an inevitable development process.
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